By Steve Moore | Tuesday 23 January 2024
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Previously writing on recruitment and training group Staffline (STAF), in June with the shares at 35p I concluded I was cautious despite a suggested modest prospective earnings multiple considering macroeconomic headwinds, competitive industry dynamics and net debt. A trading update today is headlined “Robust performance delivered full year underlying operating profit in-line with market expectations. Net cash (pre-IFRS 16) significantly ahead of market expectations maintaining ongoing balance sheet strength that underpinned £5 million share buyback programme in 2023”. So what of the shares currently below 23p – including a further more than 7% lower on the back of the trading update?
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